NZDCHF unable to break through key resistance level
New Zealand Dollar/Swiss Franc (NZDCHF) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
NZDCHF finished the week 2.74% higher at 0.5923 after losing 17 pips (-0.29%) today. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NZDCHF as at May 22, 2020):
Friday's trading range has been 42 pips (0.71%), that's below the last trading month's daily average range of 81 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NZDCHF. Prices continued to consolidate within a tight trading range between 0.5887 and 0.5953 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Unable to break through the key technical resistance level at 0.5940 (R1), the FX pair closed below it after spiking up to 0.5950 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move lower than 0.5902 in the previous session, the currency found buyers again around the same price level today at 0.5908. The last time this happened on Monday, NZDCHF gained 0.65% on the following trading day.
The pair shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 0.5953 where further buy stops might get activated. Trading close to March's high at 0.6056 we could see further upside momentum if potential buy stops at the level get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for NZD/CHF. Out of 796 times, NZDCHF closed higher 50.88% of the time on the next trading day after the market condition occurred.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCAD closing 0.33% higher and USDCHF gaining 0.08%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more